The Value of an IT Investment Can Be Dependent on Whether

question 18

Multiple Choice

The value of an IT investment can be dependent on whether complementary capabilities exist within the firm.Which of the following is not one of the required complementary capabilities?

• A)Skilled workers.
• B)The ability to work in a team environment.
• C)The ability to query a database.
• D)The design of work processes.

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Definitions:

Accounting Break-even

The point at which total costs and total revenues are equal, meaning the business is not making a profit or loss.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and loan payments.

Cash Break-even

The point at which a company or project has enough cash flow to cover its operating expenses, without considering profits.

Accounting Basis

The method used to record the financial transactions of a business (e.g., cash basis, accrual basis).